Don't worry, Bush is on top of it....he's on top SCREWING THE PEOPLE of the US
it's only the 6th LARGEST ECONOMY IN THE WORLD......
Job Losses in State Accelerate; July Payrolls Lowest in 2 Years
By Marla Dickerson, Times Staff Writer
California employers in July axed a net 21,800 jobs —
half the jobs the entire nation shed last month —
sending payrolls plunging to their lowest level since the
state's job market began its long slide more than two
years ago, according to government data released
Friday.
The losses marked the largest one-month jobs decline
in California since December.
Nearly every sector posted losses — notably retailing,
transportation, manufacturing and business services —
demonstrating a widespread reluctance among
employers to hire.
Worse yet, the loss of jobs accelerated at a time when
many economists had expected to see some stirrings of
growth.
The unemployment rate did drop two-tenths of a
percentage point to 6.6% in July, from a revised 6.8%
in June. But analysts said that was only because more
people quit looking for work and thus are no longer
counted in official statistics. The U.S. unemployment
rate was 6.2% in July.
Analysts cautioned that the California job loss figures
could be slightly distorted because of seasonal factors.
For example, the government sector took the heaviest
pounding, in large part because of declines in teaching
and other local education positions. But it is tricky to
adjust for the summertime ebb and flow of such jobs
from public schools.
Still, with communities across the state struggling
mightily to close budget gaps, many believe the drop in
government payrolls was more than a seasonal fluke.
Through the first seven months of the year, California
shed a net 33,200 jobs. Since employment peaked in
March 2001, the state has lost more than 293,000
positions — or 1.9% of its employment base —
marking a new low in non-farm payrolls for this
economic cycle.
By comparison, the state lost more than half a million
jobs from peak to trough in the brutal recession of the
early 1990s.
In July, more than 1.1 million Californians were unemployed, according to the
state Employment Development Department. Nearly one-quarter of them have
been out of work for more than six months.
"There are still no signs of recovery in the job market," said Ted Gibson, former
chief economist with the state Department of Finance. "There is no upward
momentum. It seems to be going in the opposite direction."
Northern California continued to suffer the worst fallout from the long technology
downturn, with the Bay Area posting some of the highest unemployment rates in
the state. The jobless rate in Santa Clara County, the heart of Silicon Valley, was
8.4%. The county has seen payrolls contract by more than 200,000 jobs, nearly
19% of its employment base, since employment peaked in December 2000.
Southern California has fared better — but hasn't been generating enough
economic activity to brighten the state's overall jobs picture.
In Los Angeles County, the jobless rate fell to 6.8% last month from a revised
7% in June.
Orange County held steady at 4%, as did San Diego County at 4.5%, while
Riverside County's rate went to 6.7% from 6.2% in June and San Bernardino's
dipped to 6.2% from 6.3%. Ventura's unemployment rate climbed to 5.5% from
5.2%.
California's massive government sector was the big loser in July, shedding a net
9,600 jobs.
Since January, the sector has shrunk by 31,900 jobs, most in city and county
governments, which account for 70% of public-sector employment in California.
From doctors laid off in Los Angeles County to city mechanics pink-slipped in
Oakland, communities up and down the state are being forced to tighten their
belts.
"Budget woes are hitting local government and we're just beginning to see the
impact now," said Michael Bernick, director of the state Employment
Development Department. "We're going to continue to see declines."
The rest of the labor market wasn't much to write home about either. The
manufacturing sector lost an additional 6,500 factory hands in July.
In fact, California's factories have slashed jobs in 30 of the last 31 months, with
total employment down 60,300 jobs since July 2002. And manufacturing hours
and average weekly earnings likewise declined, underscoring continued
weakness in the state's industrial sector.
Other sectors posting job losses were health services; trade, transportation and
utilities; professional and business services; leisure and hospitality; and
construction.
Those that gained were natural resources and mining, information services and
financial services.
In percentage terms, California has performed about the same as the rest of the
country in job losses over the last 2½ years, with both the state and nation
shedding about 2% of their nonfarm payroll jobs over that time.
But economists say California faces unique challenges that could take its job
market longer to recover.
A disproportionate number of the state's job losses were in the technology
sector, which has shown no signs of a rebound. In addition, firms have been hit
with a string of rising business costs, the most significant being workers'
compensation.
Many companies have seen their workers' comp premiums double, or even
triple, in just the last year.
Because premiums are based in part on the size of a company's payroll, some
employers are slamming the brakes on hiring or even cutting their workforces to
reduce costs.
Howard Furst, owner of AAA Flag & Banner Manufacturing Co. in Los
Angeles, recently laid off six flag installers in an effort to keep his premiums down
after his bill doubled to $400,000.
"These rates are killing us," said Furst, who employs about 200 workers. "I'm
even thinking of moving to Las Vegas."
Economists say that, for the time being, there appears to be no reliable engine of
growth to pull California's labor market out of its funk.
One of the few sectors to gain jobs over the months, financial services with 900
net additions in July, has been sizzling along with the red-hot housing market.
But with interest rates rising and mortgage refinancing activity cooling down,
economists don't expect that to last.
"Mortgage brokers don't mess around," said Howard Roth, chief economist for
the state Department of Finance. "If interest rates continue to rise, those jobs are
going to dry up fast." 'There are still no signs of recovery
in the job market. There is no upward
momentum. It
seems to be going
in the opposite direction.'
Ted Gibson, former chief economist with the state Department of Finance |
